As Airlines Cut Service, Prices Rise and More Travelers Drive; 'Rocket City' Fails to Break Out

To reverse years of declining traffic and fewer flights, Huntsville International Airport last year decided to offer its few remaining airlines incentives if they enhanced service to the small, northern Alabama city.

The airlines were furious.

The plan, drawn up last summer, would set aside up to $5 million this year in potential rewards for airlines that added flights, lowered fares or otherwise encouraged Huntsville fliers...